Stronger rand takes bite out of Brait’s dividend
Investment holding company acknowledges that New Look had a difficult year, says ‘conditions are expected to remain challenging’ until the end of 2018’
Brait cut its dividend by 42.65% to 78.15c as a stronger rand against the pound and tough retail conditions in the UK took their toll on its net asset value. The investment holding company has a policy of linking its dividend to its net asset value per share, which fell 42.65% to R78.15 at March 31 2017 from R136.27 at March 31 2016, the company said in its results statement on Tuesday morning. The rand gained 20.5% from R21.21/£ to R16.87/£ over the financial year, worsening the plunge in the rand value of Brait’s UK clothing chain New Look. New Look was valued at R7bn on March 31, one-fifth of the R35bn it was valued the previous year. This contributed to the overall value of Brait’s investments, falling 39% to R44.4bn from R73bn. "New Look’s 2017 financial year has clearly been difficult and conditions are expected to remain challenging through 2018. Plans have been set accordingly to address the specific issues experienced in 2017 and improve business performance, whilst continu...
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